TJX Companies (NYSE:TJX) announced last week that it would be raising its dividend by an impressive 13%. The new quarterly payment of $0.3325 means that the stock’s yield is now up to 1.7%, which is right around the S&P 500 average. It’s not a terribly high payout, but if it keeps growing, there’s plenty of incentive for investors to buy and hold.
And for TJX, this is the 26th time it has increased the dividend in the past 27 years. And it boasts that over that stretch, the payout has increased at a compounded annual growth rate of 20%. The company also plans to reward its shareholders with buybacks, planning to repurchase up to $2.5 billion in stock during fiscal 2024.
The company is coming of a strong quarter recently as its U.S. comparable store sales rose by 4% in Q4. Total net sales of $14.5 billion were up by 5% as the company has proven to be resilient amid inflation.
TJX has over 4,800 stores across nine different countries. Consumers will be most familiar with T.J. Maxx and Marshalls, its top stores – it has more than 1,100 locations of each of those brands.
While the markets have struggled over the past year, shares of TJX are up an impressive 24%, as it has been proven to be a bit of a safe haven stock right now. Between a growing dividend and some solid results, this may be a great stock to hold in your portfolio. Over the past decade, the stock has risen an impressive 229%.